Large specs holding massive Eurodollar shorts; what does it mean?

The Commodity Futures Trading Commission (CFTC) designated ‘Non-Commercial’ accounts are often referred to as ‘large-speculators’ as this distinguishes them from natural hedge use of futures and options as is the case with ‘Commercial’ accounts. Looking to CFTC data concerning Eurodollar Futures (only) and Futures and Options (together), we note the record level of net short positions held by this account holder type.

Notice that until only a couple months ago, the record low was marked at the end of 2011, a point where expectations ran high that the global economy was on the road to sustained recovery. Since then, there has been repeated misfiring on the global economic engine and questions arise again following recent employment and production reports as to the durability of current economic growth.